AUSTRALIA – POLITICS AND GOVERNMENT

Bashing business damages economy

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Original article by Glenda Korporaal
The Australian – Page: 13 : 23-Dec-19

Former Business Council of Australia president Graham Bradley says that "anti-business rhetoric" within government is having a negative impact on the economy and deterring capital investment. He has also criticised the federal government for aligning itself with small and medium business and denigrating big business. Meanwhile, Australian Investment Council CEO Yasser El-Ansary says weak consumer confidence is deterring companies from investing, adding that the BCA’s proposal to include a business investment allowance in the May 2020 Budget would only provide a short-term economic stimulus.

CORPORATES
BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN INVESTMENT COUNCIL

Business to PM: Get economy moving

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Original article by John Kehoe
The Australian Financial Review – Page: 3 : 20-Dec-19

The Business Council of Australia has called on the federal government to maintain its surplus goal as part of its Budget submission. The BCA has urged the government to help stimulate the economy through the adoption of an investment allowance, reducing red tape for infrastructure projects, and by making structural changes to the tax system over the longer-term. The BCA’s submission also calls for measures to boost workers’ skills, along with a new industry policy.

CORPORATES
BUSINESS COUNCIL OF AUSTRALIA, WOODSIDE PETROLEUM LIMITED – ASX WPL

Kyoto credits may not be needed

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Original article by Mark Ludlow
The Australian Financial Review – Page: 1 & 8 : 18-Dec-19

Energy Minister Angus Taylor says Australia is on track to exceed its 2030 carbon emissions reduction target under the Paris climate agreement. He says the nation has consistently over-delivered with regard to reducing carbon emissions, and he is confident that it will do so with regard to the 2030 target. Matt Harris of Frontier Economics believes that Australia can meet its 2030 target without needing to use Kyoto carry-over credits.

CORPORATES
AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, FRONTIER ECONOMICS PTY LTD, GRATTAN INSTITUTE

Fast-tracked income tax cuts unlikely

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Original article by Phillip Coorey
The Australian Financial Review – Page: 5 : 18-Dec-19

Treasurer Josh Frydenberg has not ruled out bringing forward the next stage of the federal government’s income tax cuts package, which is due to take effect in mid-2022. However, sources have indicated that this is unlikely given the reduction in projected Budget surpluses over the next four years. Meanwhile, Chris Richardson of Deloitte Access Economics argues that bringing forward the second stage of the tax cuts to 2020-21 would require the iron ore price to remain about $US15 per tonne higher throughout that financial year.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, DELOITTE ACCESS ECONOMICS PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, BUSINESS COUNCIL OF AUSTRALIA, SOUTH AUSTRALIA. DEPT OF TREASURY AND FINANCE

London calling: Boris talks trade

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Original article by Simon Benson
The Australian – Page: 1 & 2 : 16-Dec-19

The UK could potentially finalise a free-trade agreement with Australia within a year, after Prime Minister Boris Johnson signalled that it will be a priority for his newly re-elected government in the post-Brexit environment. Business Council of Australia CEO Jennifer Westacott says the UK election result will provide businesses with greater certainty, while a free-trade deal will benefit all Australians. Meanwhile, Prime Minister Scott Morrison says there are similarities between Johnson’s emphatic win and the Coalition’s election victory in May, as well as the election of US President Donald Trump in 2016.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, GREAT BRITAIN. OFFICE OF THE PRIME MINISTER, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN LABOR PARTY, LABOUR PARTY (GREAT BRITAIN)

Surplus to survive $30bn blow

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Original article by Simon Benson
The Australian – Page: 1 & 4 : 16-Dec-19

The federal government’s mid-year economic and fiscal outlook is forecast to confirm that the Budget will remain in surplus for the next four years. However, government revenue is expected to be up to $30bn lower than projected in the 2019 Budget, due to expectations that global and domestic economic growth will be lower than was forecast in April. Growth in wages is also expected to be lower than was forecast in the Budget. Meanwhile, the government is expected to maintain its forecast that the price of iron ore will average $US55 a tonne in 2019-20, even though it is significantly higher at present.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF FINANCE, DELOITTE ACCESS ECONOMICS PTY LTD, AUSTRALIAN LABOR PARTY

Call to end retrospective R&D audits for business

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Original article by Tom McIlroy
The Australian Financial Review – Page: 9 : 12-Dec-19

Small Business & Family Enterprise Ombudsman Kate Carnell has recommended changes to the administration of R&D tax incentives following a review of the scheme. Amongst other things, she has proposed that the federal government cease requiring recipients to undergo retrospective audits, often some years after they received the tax incentive. Carnell notes that the Australian Taxation Office has frequently required small businesses to repay the full amount of the tax incentive after an audit, including harsh financial penalties.

CORPORATES
AUSTRALIA. OFFICE OF THE AUSTRALIAN SMALL BUSINESS AND FAMILY ENTERPRISE OMBUDSMAN, AUSTRALIAN TAXATION OFFICE, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, AIRTASKER PTY LTD

No senior minister but mega department will work

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Original article by Olivia Caisley
The Australian – Page: 4 : 12-Dec-19

The Department of Agriculture, Water & the Environment will be formally established on 1 February, as part of the federal government’s plans to streamline the bureaucracy. The existing ministers for each portfolio – Bridget McKenzie, Sussan Ley and David Littleproud – will remain in these roles, and McKenzie has confirmed that the new department will not have a senior minister. She is confident that the three ministers will work well together and that the new department will deliver "real outcomes" for regional communities.

CORPORATES
AUSTRALIA. DEPT OF AGRICULTURE AND WATER RESOURCES, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY

Time for Adani to deliver on jobs

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Original article by Greg Brown
The Australian – Page: 4 : 12-Dec-19

Labor leader Anthony Albanese says Adani’s Carmichael coal mine has been approved, so the company should begin creating the jobs that it has promised. Adani in turn argues that it already employees hundreds of people. Albanese has also used his tour of regional Queensland to call for labour-hire workers in the mining sector to receive the same pay as direct employees, contending that some are paid up to 40 per cent less. He has also criticised the federal government for its lack of action regarding the low wages of labour-hire workers.

CORPORATES
AUSTRALIAN LABOR PARTY, ADANI MINING PTY LTD, BHP GROUP LIMITED – ASX BHP, MITSUBISHI CORPORATION

Carbon accounting trick a no-go for ALP

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Original article by Rosie Lewis
The Australian – Page: 4 : 12-Dec-19

Energy Minister Angus Taylor says the federal government will only use Kyoto carry-over credits to the extent necessary to meet its 2030 carbon emissions reduction targets under the Paris climate agreement. Opposition leader Anthony Albanese has reiterated that Labor will not use the carry-over credits if it wins the next federal election. Meanwhile, a report produced by Climate Analytics on behalf of the Australia Institute has questioned the legality of using carry-over credits.

CORPORATES
AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, AUSTRALIAN LABOR PARTY, CLIMATE ANALYTICS, THE AUSTRALIA INSTITUTE LIMITED